Oahu Home with Pool

Single-family homes on Oahu hit a record-median price in August while sales volume held  steady. However, the condominium market remained challenged by the COVID-19 pandemic.

The Honolulu Board of Realtors reported today that single-family homes reached a new record-high median sales price of $839,000, climbing 6.2% from $790,000 in August of 2019. Single-family sales volume rose 2.8% going up to 370 sales from 360 sales during August of 2019.

“A lack of inventory coupled with high demand from buyers looking to capitalize on historically low interest rates is driving a very competitive market for single-family homes on Oahu,” said Tricia Nekota, president, Honolulu Board of Realtors said in a statement. “This is an opportune time for sellers to list their properties as housing values continue to rise, and buyers are on the hunt for their forever homes.”

Single-family homes sold 44.4% faster this August than during the same month last year, with these properties spending a median of just 15 days on the market. Increased demand due to continued low interest rates was coupled with limited supply as there were 20% fewer listings this year than last year.

During the past three months, 43% of single-family home sellers received their full asking price or higher compared to 35% during this same period last year. In our experience working with Buyers over the past few months, almost every home is receiving multiple offers and going for prices over asking.

Hawaii real estate analyst Stephany Sofos said some of the additional single-family home sales were likely fueled by a coronavirus-related desire on the part of some condominium owners to seek properties where they were able to socially distance better.

“The suburbs are becoming more attractive as more buyers look for homes where they can socially distance,” Sofos said. “The pandemic has made people less likely to want to share public spaces and elevators.”

Sofos said low interest rates also have helped more buyers qualify for single-family home purchases.

The median price for an Oahu condominium in August also rose but at a lesser acceleration, only increasing 2.5% to $430,000 from 419,500 in August of 2019. Meanwhile, condominium sales volume fell a steep 20.1% to 409 units from the 512 condominiums that changed hands in August of 2019.

New listings for condominiums also remained 19% below last year. However, year-over-year median days on the market remained steady with condominiums spending an average of just 23 days on the market.